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Reimagining Engagement and Loyalty in Banking and Capital Markets


Though financial institutions are known safe havens for wealth, the ever-growing list of banking alternatives is a strong motivator for change.

Banks that want to grow their share of wealth from their increasingly multichannel and multi-tenant customer base need to provide consistent information, clear offerings, and personalized services.

Consequently, financial institutions should consider reevaluating their business models by answering the following questions:
• Are they a network of payment processors, investment advisors, and liquidity providers?
• Or, are they in the business of fulfilling customer expectations?

The two were once synonymous, but changes in expectations have led to the emergence of these two divergent business models. To adopt the latter, banks need to master the data, provide transparency, and create a 360-degree view of the customer.


48 percent of U.S. customers believe companies need to do a better job of integrating experiences.


Financial institutions are rich in quality data about their customer’s essential priorities and concerns. But the challenge remains: how to make sense of the data and turn it into real insight? Security measures and know-your-customer (KYC) requirements have made banks very adept at discerning customers’ identities, but very few have a holistic customer view.

The lack of a holistic view can be attributed to the nature of the internal systems of a bank. Nearly every financial institution has a plethora of computer systems, few of which are designed to communicate with each other. But, for the customer, who is unconcerned about internal operations, these restrictions are purely artificial. Restoring individuality to the customer requires a paradigm shift in the way that banks handle data.

40% of consumers would be more loyal to their bank if it provided more personalized service.


There are three fundamental changes that every financial institution must embrace to create orchestrated experiences successfully:
• Master the data
• Embrace collaboration
• Support an open API platform

Financial institutions that create an open ecosystem will attract the best partners and gain the agility they need to deal with uncertainty. An open ecosystem allows for building new customer touchpoints and participating in more value chains.

Only 33 percent of consumers feel loyalty to their current financial institution.


The next generation of digital trust

Customers, particularly younger generations, are placing their values above financial concerns and doing business with companies that share those values. Banks have an opportunity to illuminate and demystify many previously non-transparent activities. In addition, they have an opportunity to use their positions as trusted intermediaries to help their customers understand how their data is being used.

We live in a world where consumers routinely share personal information but have very little control over their data. Customers regularly express anxiety over how information on transactions, debt, and account status is aggregated, scored, and then sold to third parties. In some regions, this has spurred regulation—such as the General Data Protection Regulation (GDPR) in the European Union—helping consumers maintain control over their data and compelling financial institutions to comply.

However, if a financial institution acts as the arbiter of trust and identity across all touchpoints and channels, they are now in a unique position to serve as a highly secure and agile platform. One where they exponentially increase customer touchpoints while simultaneously exploring new lines of business.

Analytic-driven customer delight

While only a few large clients or high-net-worth individuals may be well known to a financial institution, most customers are numbered and batched. Obtaining a real understanding of every customer—the mythical customer 360—can be obtained by applying advanced analytics and AI to the wealth of information both inside and outside the bank. This combination could correctly identify, analyze, and recommend actions for each customer as an individual instead of a segment.

Imagine how much better customer engagements could be if you not only met customers’ goals but also gave them a product or service they weren’t aware they needed. Untethered from legacy restrictions, AI scales to meet demand virtually without limit. Tailored products or orchestrated encounters can now be offered by employees to every client at every touchpoint, satisfying customers with information and offers that are relevant and timely.

The continual delighting of customers, built on a foundation of trust, is the key to repeat business and the fuel for a growing share of wallet. In the financial industry, where competitors can easily replicate products and services, fostering loyalty creates a competitive advantage.


Explore how financial institutions can use an analytics-driven approach to inspire customer trust and delight – download Revel’s whitepaper on CX Orchestration now!




Further Reading:

“5 Customer Experience Trends for Banking in 2020,” Jim Marous, The Financial Brand 2020

“How financial services should manage customer experience in a digital age,” Abhishek Soni, CX Network 2019

“Managing a customer-experience transformation in banking ,” Nicolas Maechler, et al, McKinsey 2018

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Revel InsightsReimagining Engagement and Loyalty in Banking and Capital Markets

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